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OF F FICE O FY 2018/ of the /2019 PR Me Augu COUN

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OF F FICE O FY 2018/ of the /2019 PR Me Augu COUN OFFICE OF THE COUNCIL AUDITOR FY 2018/2019 PROPOSED BUDGET FINANCE COMMITTEE MEMBERS Greg Anderson – Chair Joyce Morgan – Vice Chair Lori N. Boyer Reginald Gaffney Bill Gulliford Jim Love Sam Newby Meeting #4 August 23, 2018 COUNCIL AUDITOR’S OFFICE TABLE OF CONTENTS MEETING #4 Downtown Vision, Inc ........................................................................................................................................... 1 Downtown Investment Authority ........................................................................................................................... 4 Public Parking ........................................................................................................................................................ 6 Downtown Economic Development Fund .............................................................................................................. 9 Tax Increment Districts .......................................................................................................................................... 10 Office of Economic Development .......................................................................................................................... 25 Cecil Field Trust ..................................................................................................................................................... 27 Office of Sports and Entertainment ........................................................................................................................ 30 Special Events ......................................................................................................................................................... 32 City Venues - City .................................................................................................................................................. 35 City Venues - SMG ................................................................................................................................................. 38 City Venues Surcharge ........................................................................................................................................... 41 City Venues – Debt Service .................................................................................................................................... 44 Sports Complex Capital Maintenance .................................................................................................................... 46 COUNCIL AUDITOR’S OFFICE COMMENTS AND RECOMMENDATIONS MAYOR’S PROPOSED FY 2018/19 BUDGET DOWNTOWN VISION, INC. (DVI) BACKGROUND: Downtown Vision Inc. (DVI) is a not-for-profit 501(c)(6) organization whose mission is to build and maintain a healthy and vibrant downtown community and to promote downtown as an exciting place to live, work and visit. A public hearing on the assessment roll for DVI was scheduled for August 21, 2018 at the regular City Council Finance Committee meeting. DVI operates an affiliate 501(c)(3) organization called Downtown Vision Alliance (DVA) to attract donated dollars. The budget for DVA is not included in the FY 2018/19 Mayor’s Proposed Budget. Council Change FY 2018/19 Adopted Change in % ESTIMATED REVENUES Proposed 2017/18 Assessed Properties $ 794,285 $ 769,627 $ 24,658 3.2% City of Jacksonville 456,775 458,491 (1,716) (0.4%) Other Sources 255,307 165,261 90,046 54.5% Total Estimated Revenues $ 1,506,367 $1,393,379 $ 112,988 8.1% APPROPRIATIONS Mktg, Business & Mayor's FY Council Clean, Safe Promotions, Management Change Stakeholder 2018/19 Adopted FY Change and Attractive Special & General in % Support Proposed 2017/18 Projects Personnel Services $ 86,796 $ 228,555 $ 86,796 $ 53,193 $ 455,236 $ 467,781 $ (12,545) (2.7%) Operating Expenses 716,125 212,636 66,990 55,276 1,051,028 925,598 125,430 13.6% Total Appropriations $ 802,921 $ 441,191 $ 153,786 $ 108,469 $ 1,506,367 $1,393,379 $ 112,988 8.1% ESTIMATED REVENUES: 1. Assessed Properties: DVI’s main source of revenue has been a 1.1 mill special assessment of downtown commercial property owners. The budgeted assessment is estimated to be $794,285. The increase of $24,658 from FY 2017/18 is due to higher property values. 2. City Contribution: The amount of $456,775 is the City’s contribution to DVI. This contribution represents 1.1 mils of the City’s assessed property value. 3. Other Sources: The net increase of $90,046 is mainly due to an increase of $61,839 in special events/sponsorships/miscellaneous due to higher revenue projected for the annual DTJax Gala fundraiser and remaining CDBG funds from a grant awarded in FY 2017/18 to DVA (See Recommendation 1). The net increase is also due to an increase of $26,649 in contracted services due to DVI’s new project with JTA that has ambassadors provide support at some Skyway stations. -1- COUNCIL AUDITOR’S OFFICE COMMENTS AND RECOMMENDATIONS MAYOR’S PROPOSED FY 2018/19 BUDGET DOWNTOWN VISION, INC. (DVI) APPROPRIATIONS: 1. Personnel Services: The net decrease of $12,545 is due to a decrease of $18,559 in salaries and payroll taxes due to employee turnover. This is somewhat offset by an increase of $6,118 in employee benefits due to a higher cost of health insurance. 2. Operating Expenses: The net increase of $125,430 is mainly due to increases in costs for the Ambassador team and the DTJax Gala fundraiser. SERVICE LEVEL CHANGES: DVI has entered into an agreement with JTA to assign Ambassadors to some Skyway stations. Ambassadors assigned to the Skyway will be expected to provide a variety of services to transit users such as offering directions to and from Skyway stations, greeting passengers, and recording useful data for DVI and JTA. RECOMMENDATION: Schedule AE should be revised to: 1. Other Sources needs to be reduced by $18,333 due to the inclusion of remaining grant funds from the CDBG that were given to the DVA in FY 2017/18. DVA funds should not be included in DVI’s budget. This should be offset with a reduction to Operating Expenses within the Clean, Safe and Attractive expenses category. 2. Reflect $455,340 for the total amount appropriated to personnel services. The amount of $455,236 shown on the original Schedule AE appears to be incorrect due to a mathematical error. All changes above are reflected on the revised schedule on the next page. -2- BUSINESS IMPROVEMENT DISTRICT (DOWNTOWN VISION, INC.) JACKSONVILLE, FLORIDA BUDGET - FISCAL YEAR 2018/19 ESTIMATED REVENUES Assessed Properties (1) $ 794,285 City of Jacksonville (2) 456,775 Other Sources (3) 236,974 Total Estimated Revenues $ 1,488,034 REVISED SCHEDULE AD APPROPRIATIONS Clean, Safe and Mktg, Business & Management & Total Attractive (4) Promotions, Stakeholder General (7) Special Support (6) Projects (5) Personnel Services $ 86,796 $ 228,555 86,796$ $ 53,193 $ 455,340 Operating Expenses 697,792 212,636 66,990 55,276 $ 1,032,694 Total Appropriations $ 784,588 $ 441,191 153,786$ $ 108,469 $ 1,488,034 (1) Commercial property owners in DVI's Downtown district pay 1.1 mills of their property's assessed value to DVI. (2) This reflects a contribution from the City of Jacksonville equal to 1.1 mills of the value of the City's owned property (minus a rent credit of $33,988 for Downtown Vision’s office space in the Ed Ball Building.) (3) This represents all other income for Downtown Vision, including fee-for-service contracts, voluntary contributions from exempt organizations, grants, sponsorships and revenues generated from special events. (4) These contracted services include a team of Clean & Safe Ambassadors, a supervising project manager, uniforms, supplies and equipment. This line item includes 50% of the Director of District Services salary plus 25% of administrative budget. (5) Includes salaries for Vice President of Marketing, Communications Manager, Events Manager and includes 25% of the admin budget. (6) Includes salary for 50% of Director of District Services and 25% of admin budget. (7) This represents 25% of the admin budget. The admin budget includes the CEO and Business Administrator positions. REVISED SCHEDULE AE -3- COUNCIL AUDITOR’S OFFICE COMMENTS AND RECOMMENDATIONS MAYOR’S PROPOSED FY 2018/19 BUDGET DOWNTOWN INVESTMENT AUTHORITY GENERAL FUND/GENERAL SERVICES DISTRICT (S/F 011) PROPOSED BUDGET BOOK - Page # 174-176 BACKGROUND: The Downtown Investment Authority (DIA) was created by Ordinance 2012-364-E to revitalize Jacksonville's urban core by utilizing community redevelopment area (CRA) resources to spur economic development. The agency has oversight for the development of the existing Downtown Northbank CRA and the Southside CRA. This portion of the department’s budget only includes the General Fund – GSD (S/F 011) activities. REVENUE: 1. Miscellaneous Revenue: This amount totaling $40,600 includes revenue for the rental of City facilities for the River City Brewing Company lease payment and fees for applications that are submitted to the Downtown Development Review Board. EXPENDITURES: 1. Salaries: The increase of $101,777 is primarily due to the addition of two new positions totaling $69,497, anticipated pay increases of 4.5% to be effective October 1st due to approved collective bargaining agreements totaling $22,162, and a separate pay increase for one employee that was approved in FY 2017/18 totaling $9,345. 2. Pension Costs: The increase of $31,129 is primarily due to salary increases and the addition of two employees. 3. Employer Provided Benefits: The increase of $21,655 is mainly due to
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